The “Band Regime” in Nigeria’s power sector is currently facing what many stakeholders are calling a functional collapse. Despite the initial promise of higher tariffs in exchange for guaranteed hours (Band A receiving 20+ hours), the system has buckled under the weight of recurring grid failures and the inability of Distribution Companies (DisCos) to meet their service-level agreements.
The core of the “Band” strategy was a service-based tariff. However, recent reports indicate that DisCos are systematically failing to meet the minimum supply hours for premium bands.
Multiple DisCos have been forced to “downgrade” feeders. For instance, several areas in Lagos and Abuja previously classified as Band A have been moved to Band B or E because the DisCos could no longer guarantee the 20-hour threshold.
To avoid total revenue loss, DisCos are reportedly concentrating what little power they have on Band A customers to “stay afloat,” leaving Band B and C customers with as little as 2 to 4 hours of power daily.
The “Band” regime relies on a stable national grid, which has proven elusive. In early 2026 alone, the national grid has already experienced multiple total collapses.
The Nigerian Electricity Regulatory Commission (NERC) has stepped in to penalize the persistent failure of DisCos. In March 2026, NERC ordered DisCos to refund approximately ₦20.33 billion to customers. This was largely due to overbilling and failures in the Meter Asset Provider (MAP) scheme.
NERC has previously sanctioned all 11 DisCos, deducting billions from their “annual allowed revenues” as a penalty for non-compliance with billing caps and service failures.
The Band Regime is effectively “collapsing” because the technical infrastructure (grid and gas supply) cannot support the commercial promises made to high-paying customers. Consumers are currently paying Band.
